On Thursday, United States President Donald Trump signed the executive orders to delay some tariffs imposed against Mexico and Canada till April 2.
However, this delay on tariffs by the US President is covered by the USMCA (United States-Mexico-Canada Agreement) for a month, showing a significant shift from his earlier stance and offering temporary relief to businesses and markets.
Trump announced the delay following a phone call with Mexican President Claudia Sheinbaum, saying that Mexico will not be required to pay tariffs on goods covered by the USMCA.
He further emphasized that the delay was a sign of respect for Sheinbaum and their ongoing cooperation, specifically concerning border security and efforts to curb fentanyl trafficking.
Initially, the US President did not talk about Canada in the tariff reprieve, which caused confusion in the market. However, later announcements revealed that Canada would also benefit from a delay.
Finance Minister Dominic LeBlanc, confirmed that their planned tariffs on over $125 billion worth of US goods would also be paused until April 2.
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